Strategy Raises $263.5M; BTC Holdings Steady at 843,775

Weekly ATM share sales increase cash reserve without altering BTC position

Strategy raised $263.5 million this week by selling Class A common stock through its at‑the‑market (ATM) program, while its Bitcoin holdings remained unchanged for a second consecutive week. According to a July 20 filing with the U.S. Securities and Exchange Commission, the company sold 2,732,318 MSTR shares between July 13 and July 19 and reported no transactions under its STRC, STRF, STRK or STRD preferred stock programs during the period.

The decision to prioritize equity issuance over further Bitcoin sales boosted the company’s U.S. dollar reserve to $3.225 billion as of July 19. That cash position includes proceeds from ATM placements that had not yet settled at the reporting date. Strategy uses these dollars primarily to support preferred stock dividends, service debt interest and meet other short‑term capital obligations tied to its Digital Credit securities.

No Bitcoin buys or sells; holdings confirm 843,775 BTC

For the reporting week, Strategy made no Bitcoin purchases or sales, leaving its total position unchanged at 843,775 BTC. The company reports an aggregate acquisition cost of roughly $63.69 billion for that inventory, representing an average cost basis of $75,476 per Bitcoin including fees and expenses. The company’s official Bitcoin tracker confirms the same total.

Capital strategy: equity raises versus digital asset sales

This week’s capital raise followed an even larger ATM placement the prior week, when Strategy sold roughly 4.82 million MSTR shares for about $466.7 million between July 6 and July 12. Across the two reporting periods, the firm has added approximately $675 million to its cash reserves since July 5, when it reported $2.55 billion in cash after a prior BTC sale. Despite the fresh liquidity, Strategy has not returned to buying Bitcoin; its BTC balance remains below the 847,363 BTC held before its July transactions.

The company still has approximately $23.53 billion of remaining capacity under its MSTR ATM arrangement after the latest share sales, giving it significant optionality to raise additional equity capital without tapping its Bitcoin reserve. Strategy also did not repurchase any common or preferred shares during the week, despite previously authorized buyback programs.

Background: Digital Credit Capital Framework and past BTC sales

Strategy’s current 843,775 BTC balance follows a sale of 3,588 BTC between June 29 and July 5 that generated about $216 million in proceeds. Management said that funding would support payments linked to its Digital Credit securities. That transaction occurred after the company announced a broader Digital Credit Capital Framework, which authorizes the sale of up to $1.25 billion in Bitcoin under specified conditions to strengthen the U.S. dollar reserve and meet dividend, interest and other capital requirements. That framework is discretionary and does not obligate Strategy to sell the full authorized amount.

The framework also included authorization for up to $2 billion in repurchases across common and preferred securities. As part of efforts to support preferred securities, Strategy raised STRC’s annual dividend rate to 12% from 11.5%, effective in July, and shifted toward semi‑monthly STRC dividend payments while the shares trade below their $100 reference value.

Why Strategy favors equity proceeds for now

By using common equity issuance to bolster liquidity, Strategy preserves its Bitcoin treasury while maintaining cash available to service dividends and interest. That approach limits additional downward pressure on BTC from corporate selling and gives the company flexibility to manage obligations across preferred instruments, outstanding debt and other capital needs.

STRC valuation debate and investor considerations

Market attention has shifted to the valuation and yield profile of Strategy’s preferred securities, especially STRC. On July 17 STRC closed near $85.29—well below its $100 reference—while MSTR closed at $94.85, according to historical market data. Some credit investors caution against simplistic yield calculations when valuing STRC; instead they recommend modeling expected future cash flows, leverage, dividend coverage and the company’s ability to fund distributions under varying Bitcoin price scenarios.

Credit investor Khing Oei noted that investors should not value a cash stream by simply dividing this year’s coupon by the current market price. The more nuanced approach is to examine expected future cash flows and the company’s capacity to sustain distributions—an appraisal that depends on the durability of Strategy’s cash reserve, its access to equity issuance via the ATM program, and the interplay between dividend costs and BTC market movement.

Key risks investors are watching

Investors continue to monitor several variables that will shape Strategy’s financing mix and treasury decisions: dividend obligations on preferred securities, interest payments on debt, future equity issuance, the company’s remaining ATM capacity, and the path of Bitcoin prices. While the expanded U.S. dollar reserve reduces immediate pressure to liquidate BTC, those other factors will influence whether Strategy resumes buying Bitcoin or leans further on equity markets.

Outlook

For now, Strategy’s filings indicate a clear preference for generating liquidity through common equity sales rather than additional Bitcoin disposals. The company retains substantial unused ATM capacity and a growing cash buffer to manage preferred dividends and debt service. Market participants will be looking for any sign that Strategy intends to return to the market for BTC purchases, or whether it will continue relying on MSTR ATM placements to fund capital needs and preserve its crypto treasury position.